UPSC CSE Mains Syllabus: GS-2- India and its neighborhood- relations.

GS – 3- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

India is considering a range of economic measures aimed at Chinese firms amid the border tensions.

India’s economic measures:

Why such measures:

Chinese policies so far:

India’s leverage:

  Trade scenario: · India’s trade deficit with China fell to $48.66 billion in 2019-20 on account of the decline in imports from the neighbouring country, according to government data. · Exports to China in the last financial year stood at $16.6 billion, while imports aggregated at $65.26 billion, the data showed. · The trade deficit stood at $53.56 billion in 2018-19 and $63 billion in 2017-18. · The main imports from China include clocks and watches, musical instruments, toys, sports goods, furniture, mattresses, plastics, electrical machinery, electronic equipment, chemicals, iron and steel items, fertilisers, mineral fuel and metals. · India has time and again raised concerns over the widening trade deficit with China. · The government is framing technical regulations and quality norms for several products to reduce dependence on Chinese imports. · It has also imposed anti-dumping duties on several goods, which are being dumped in the domestic market at below the average prices from China with a view to guarding domestic players from cheap imports. As many as 371 products have been identified for technical regulations. · Of these, technical regulations have been formulated for 150 products worth $47 billion of imports.
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Chinas clout:

India’s dependency:

Way forward:

Whether India’s measures will influence China’s behaviour on the border will ultimately depend on Beijing’s calculus, and whether its perceived gains from the current border stand-offs outweigh the potential costs of losing a key market.

Source:” The Hindu“.


Evaluate the recent decision of India to ban Chinese apps, considering the trade dependency of India on China. What measures are needed in the long term?